advisories & notices

The Rules Change Committee (RCC) is inviting all WESM Members and interested parties to submit comments to the Dispute Resolution Administrator’s Proposed Amendments to the WESM Rules and WESM Manual on Dispute Resolution (ORCP-WR-WM-21-02).

The proposed amendments are regarding the following topics:

A.   Dispute Resolution for the Retail Rules

To introduce a variant mode of arbitration that is specific to the types of disputes that are contemplated within the “Rules for the Integration of Retail Competition in the Wholesale Electricity Spot Market,” otherwise known as the “Retail Rules.”

B.    Guidelines for Virtual Hearings

To streamline the procedures for the conduct of WESM Dispute Resolution proceedings and provide guidelines for virtual hearings and conferences during arbitration.

C.   Final Settlement of WESM Disputes and its Binding Effect

To make the WESM Rules and the Dispute Resolution Manual consistent with the provisions of Republic Act No. 9285 and the Special Rules of Court on ADR which recognize the nature of an arbitral award being final and binding among the participants. While the proposed amendments aim to delete the provisions that allow the parties to file a formal complaint with the ERC even after an arbitral award has been rendered by the tribunal, they do not depart from the provisions of the EPIRA nor do they derogate against or encroach upon the jurisdiction of the ERC over disputes between WESM Members.

D.   Removal of the PEM Board and the WESM Governance Committees as Impleadable Entities under Clause 7.3.1.1 (c) of the WESM Rules

To align the relevant provisions of the WESM Rules related to WESM Dispute Resolution with the agreement-based or commercial arbitration framework as it was contemplated to be. The proposal seeks to remove the PEM Board and all the WESM Governance Committees from the list enumerating the parties to a WESM dispute under Clause 7.3.1.1 of the WESM Rules. The actions of the PEM Board and the WESM Governance Committees are mostly, if not all, in performance of their ERC-delegated regulatory or "police" powers therefore, disputes filed against them would question or undermine the enforcement of the regulatory policies of the market.

You may click the links below to download a copy of the discussion paper and matrix of the proposed amendments:

ORCP-WR-WM-21-02 – Discussion paper and matrix (Please write your comments in the proper columns in the matrix.)

ORCP-WR-WM-21-02 – Proposed Annex H Final Offer Arbitration Supplementary Rules

ORCP-WR-WM-21-02 – Proposed Annex I Guideline for Virtual Hearings

ORCP-WR-WM-21-02 – Table of Comparison on Video Conferencing Protocols (Supplemental Information to Proposed Annex I, for reference only)

Kindly submit your comments (in Word format) by e-mail at mag_rrd@wesm.ph no later than 06 May 2021 or 30 working days from the date of publication (22 March 2021).

Thank you.

Rules Review Division

Market Assessment Group

Philippine Electricity Market Corporation

+632 8631 8734 local 244 | mag_rrd@wesm.ph | www.wesm.ph

18F Robinsons Equitable Tower, ADB Avenue, Ortigas Center, Pasig City 1600, Philippines